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On April 20, Wanhua Chemical released its annual report for 2025 and financial results for the first quarter of 2026. Amid the overall challenging conditions in the chemical industry, the company’s annual revenue exceeded 200 billion yuan for the first time, with strong performance in the first quarter of this year, demonstrating the robust resilience and transformative capacity of a leading enterprise in the sector and injecting new momentum into the high-quality development of the oil and chemical industry. The company continues to develop steadily and positively. Financial reports show that in 2025, Wanhua Chemical achieved operating revenue of 203.235 billion yuan, a year-on-year increase of 11.62%. This marks the third consecutive year of growth for the company, with its revenue surpassing the 200-billion-yuan threshold for the first time ； The net profit attributable to the parent company amounted to 12.527 billion yuan, showing a slight decline of 3.88% on a year-on-year basis. Against the backdrop of generally falling prices for products in the industry, this fully demonstrates the company’s strong profitability resilience. In terms of quarterly performance, the company’s revenue showed an upward trend from quarter to quarter in 2025. In the first quarter of 2026, the company’s operating revenue amounted to 54.052 billion yuan, representing a year-on-year increase of 25.50% ； Net profit attributable to the parent company reached 3.718 billion yuan, a year-on-year increase of 20.62% ； Profits have returned to double-digit growth. Meanwhile, the company continues to expand its production capacity, increase R&D investment, and strengthen global coordination. Key projects such as the technological upgrade and capacity expansion of MDI in Fujian, as well as Phase II of the ethylene project, are progressing smoothly. In 2025, R&D expenditure reached 4.865 billion yuan. Overseas revenue accounted for nearly half of the total revenue, further solidifying the company’s position as an industry leader and enhancing its risk resilience. The stable profitability of polyurethanes demonstrates its resilience. As Wanhua Chemical’s core business, the polyurethanes segment has managed to maintain steady profits despite fluctuations in the industry cycle, thereby highlighting the risk-resistant capabilities of this leading enterprise. In 2025, the company’s polyurethane business generated revenue of 75.058 billion yuan, a slight decrease of 1.04% on a year-on-year basis. In the first quarter of 2026, the polyurethane segment generated revenue of 19.294 billion yuan; the overall increase in product prices was the key factor driving this growth in performance. Wanhua Chemical has MDI production facilities with an annual capacity of 3.8 million tons, and TDI production facilities with an annual capacity of 1.47 million tons; its total production capacity for polyether products amounts to 2.32 million tons per year. Leveraging scale effects, a robust cost control system, advanced technological advantages, and a comprehensive industrial chain that spans from raw materials to the end product, the company continues to expand into high-end application areas, further strengthening its core competitiveness. It exhibits strong resilience in development, with profit stability that far exceeds the industry average. The potential of lithium batteries as a second growth driver is becoming increasingly evident. In light of the industry’s transformation trend, Wanhua Chemical has positioned its lithium battery business as a strategic secondary core business. In 2025, the company will make every effort to advance the capacity expansion and technological innovation in its lithium battery business. Among them, the battery materials subsidiary is expected to generate revenue of 8.562 billion yuan by 2025, with increasing certainty regarding its business growth. In terms of production capacity layout, the company has established a complete full-industry-chain layout for lithium battery materials. Currently, Wanhua Chemical’s fourth-generation lithium iron phosphate products, which utilize a new lithium iron oxide sintering technology, are now in mass production and being supplied to the market. The fifth-generation lithium iron phosphate products have also been finalized and launched. On December 4, 2025, Wanhua Chemical announced that it would invest in building a lithium iron phosphate production facility with an annual capacity of 650,000 tons in Laizhou. In February this year, the new generation battery material industrial park project of Wanhua Chemical was launched in Haiyang City, Yantai. The total investment in this project is 16.8 billion yuan, with plans to build facilities for producing 500,000 tons per year of lithium iron phosphate cathode materials and 300,000 tons per year of artificial graphite anode materials. The first phase, which involves the production of 100,000 tons per year of lithium iron phosphate cathode materials, is scheduled to begin operations in June 2026. Earlier, Wanhua Chemical also launched a project in Meishan, Sichuan, to produce 100,000 tons of lithium iron phosphate cathode materials for lithium batteries per year; Phase I of the project has now been officially put into operation. As a result, Wanhua Chemical’s total planned production capacity for lithium iron phosphate exceeds 1.25 million tons. At the same time, by taking control of Tongling Chemical to access phosphate rock resources, Wanhua Chemical has established a multi-dimensional integrated production framework that spans \"upstream phosphate rock – phosphoric acid – iron phosphate – PVDF – lithium iron phosphate – anode materials – lithium batteries,\" which will provide strong support for the expansion of its battery material production. At the technical level, the company’s multiple generations of lithium iron phosphate products have reached mass production status, while its sodium-ion battery products have been finalized for industrial use. Its technologies in the areas of graphitization and silicon carbon are at the leading level in the industry; it has established full cooperation with major battery customers and is able to supply products on a large scale. As the production capacity for lithium battery materials increases rapidly, coupled with the emergence of scale effects and a continuous improvement in the customer base, the profitability of this business is expected to improve gradually, becoming the key driver of growth for the company over the next 3–5 years. The emerging businesses have achieved significant breakthroughs. While strengthening its advantages in its core business areas, Wanhua Chemical has actively expanded into the field of high-end new materials. Breakthroughs have been made in emerging businesses such as POE, VA, and MS resins, which has further enriched the company’s portfolio of high-value-added products and served as an important driver for its transformation and growth. As the core material for photovoltaic adhesive films, POE (polyolefin elastomer) has long been under the monopoly of foreign companies. Wanhua Chemical has successfully developed the key technologies required for its production and built a facility with an annual capacity of 200,000 tons. The performance of its products meets international standards, allowing them to be used in high-end applications such as photovoltaics and new energy vehicles; thus, these products possess strong competitiveness. VA (Vitamin A) went into official production in March 2025. The company has secured over 60 core patents, successfully establishing a technical loop that spans from isobutylene to citral to VA, thereby enabling full coverage of the entire industrial chain for this product. The 48,000-ton/year citral plant represents the largest single-unit production capacity worldwide. It can not only meet its own demand for VA production, but also sell the intermediate product externally to compete in the international market. Leveraging the advantages of raw materials in the polyurethane industry chain, the company has low production costs for VA. It has established strategic partnerships with leading feed manufacturers and is working to promote the market for high-purity VA active pharmaceutical ingredients. In addition, high-end chemicals such as MS resin were also introduced simultaneously, enabling Wanhua Chemical to successfully enter the field of high-end optical materials. Devices such as XLPE and menthol were all successfully started up for the first time and have been operating stably. New business areas, in conjunction with the polyurethane and lithium battery businesses, drive strong momentum for the company’s long-term high-quality development. Overall, Wanhua Chemical has worked steadily to strengthen the foundation of its core business in 2025; the recovery in performance in the first quarter of 2026 demonstrated its resilience, and the strategic pattern of \"stable growth in traditional businesses and rapid progress in emerging businesses\" is becoming increasingly clear. In the future, with the implementation of key projects and ongoing technological innovation, the company will further strengthen its leading position in the industry, driving its development toward higher standards, greater sustainability, and increased intelligence.